Early Loan Repayment

A question about : Early Loan Repayment

Hello,

I'm a 2012-starter student on a 3-yr course due to finish this year.
My student loan debt is estimated around Ј44K.
My starting salary will be Ј31250 (+2.45% annual inflation).

My minimum annual repayments will be (31250-21K) * 9% = Ј922.5. According to the calculator on this website, the debt will be wiped after 30 years, total sum repaid being Ј83K.

Should I pay it back early, assuming I can spare Ј9K every year from the start of my work? This would roughly allow me to pay back the entire loan in about 5 years (and definitely less than Ј83K).

My spare is already taking living costs and pension contributions into account.

Thanks in advance.

Best answers:

• If you feel that it is safe to assume you will be a high earner then it makes sense, in that you will pay far less overall (mainly thanks to the outrageous interest rate, currently 5.5%).
  Though against this, you could be saving the 9k a year towards a house deposit etc. Which may save you money (mortgage vs rent, lower mortgage rate with higher deposit, getting on the house ladder earlier, house price inflation runs high generally).